As predicted by CCT earlier this week, Geely look to be in the clear to purchase Volvo from Ford. Initial rumors indicated that Geely had the go ahead from their supporting banks, but were lacking in moral support from the central government. (It is rumoured in certain circles that the central government are mildly embarrased of Geely)
Geely today received permission to study the possibilities of acquiring Volvo fromÂ China’s National Development and Reform Commission (NDRC). The NDRC is essentially a central government organ that oversees economic policy for the PRC, and oversees any large investment by Chinese firms into foreign companies
Since the news broke in the mainstream Western media of Geely’s approval to buy the stricken auto maker, Geely officials came out to deny any purchase of Volvo. Geely are also reportedly working on other acquisitions, but these remain secret.
The acquisition of Volvo by Geely would mean that Geely would get hit by short term losses in the USA and European markets, but in the long run Geely would gain a massive leap over its nearest competitors with the addition of Volvo technology, which would bring Geelys own made cars upto (and beyond) world standards within a very very short time.